WASHINGTON—On March 17, 2025, U.S. President Donald Trump nominated Federal Reserve Governor Michelle Bowman to the central bank’s top regulatory post as vice chair for supervision. This pivotal appointment comes in the aftermath of Michael Barr stepping down from his role at the end of February 2025 to preempt a potential legal dispute with the Trump administration. Bowman’s nomination has garnered interest for its implications on the future of bank oversight in the United States.
Bowman, a former community banker and vocal critic of stringent bank regulations, expressed gratitude for the nomination, stating, “I would like to express my thanks to President Trump for nominating me as the vice chair for supervision. I am grateful for the continued faith and confidence he has placed in me to fulfill this vital role.” This reflects her enthusiasm for steering the Federal Reserve towards a more adaptive regulatory stance.
The new vice chair for supervision is expected to promote a less stringent approach to bank regulation and rewrite rules that would ease the financial burden on banks. Trump, who took office on January 20, emphasized the need for a change, remarking that “Our economy has been mismanaged for the past four years, and it is time for a change. Miki has the ‘know-how’ to get it done. I am confident we will achieve economic heights never before seen in our nation’s history.”
Prior to her current role, Bowman has been a part of the Fed board since 2018 when she was nominated by Trump for a position reserved for individuals with community banking experience. Her prior experience includes serving as state bank commissioner of Kansas and vice president of Farmers & Drovers Bank. According to industry insiders, her deep understanding of community banking and her previous roles may guide significant policy shifts at the Fed.
The reaction from the banking industry has been overwhelmingly positive. Rob Nichols, president and CEO of the American Bankers Association, indicated his support, saying, “Since joining the Fed, Governor Bowman has been a thoughtful, principled voice for sensible regulatory and monetary policy and someone who understands the important role that banks of all sizes play in our financial system and our economy.”
If Bowman is confirmed by the Senate, she will fill Barr’s vacancy created by his departure to avoid potential legal consequences stemming from conflicts with Trump, though he will remain a member of the Fed’s governing board until his term ends in 2032. Analysts predict she is likely to receive swift confirmation, allowing her to step into a crucial role that directly influences the regulatory landscape for some of the nation’s largest banks.
One of the significant components of Bowman’s upcoming responsibilities will entail overseeing the Fed’s extensive bank regulatory portfolio, which includes establishing and supervising rules for major financial institutions. Throughout her tenure, she has criticized Barr’s proposals, particularly the controversial “Basel III Endgame” which aimed to enforce stricter capital requirements for large banks. Bowman opposed this plan arguing that the capital burdens required would impede banks' abilities to lend and contribute to economic growth.
Moreover, big banks have shown strong support for Bowman’s policy outlook; they have lobbied Congress to lessen the regulatory crackdown, which they argue hinders their operations. Her dissent against the 2023 proposals to strengthen regulations on banks such as JPMorgan Chase and Bank of America, which included raising capital reserves to cover potential losses, foreshadows a regulatory shift that could alleviate compliance costs and spur lending.
Bowman’s regulatory philosophy is expected to focus on transparency and predictability within the Fed's stress testing framework for large banks, a concern she has touted during her speeches. The Fed recently announced plans to amend how stress tests are conducted, aligning with Bowman's advocacy for clearer processes that may further encourage banks' compliance while boosting consumer confidence.
Reflecting on her qualifications, Bowman graduated with a bachelor of science in advertising and journalism from the University of Kansas, later earning a juris doctorate from Washburn University School of Law. She also has an extensive background in public service, having worked for Senator Bob Dole and held roles with the Federal Emergency Management Agency and the Department of Homeland Security.
The implications of her nomination extend beyond merely filling a position; they suggest a turning point in how bank regulation might be approached moving forward. Critics of the previous administration's regulatory framework often contend that such an approach stifles financial innovation and economic growth.
As Bowman awaits Senate confirmation, her nomination symbolizes a movement towards bolstering financial industry support under the Trump administration while also aiming to promote a regulatory environment that potentially favors community banking as well. The coming weeks will be critical, not just for her career, but for the future regulatory landscape in the nation’s banking system.
